UPSC CSE Prelims 2024

India and Bhutan

  • Intro: PM Modi: no two countries in the world understand each other so well or share so much as India and Bhutan."
  • Treaty of friendship 1949 that was revised in 2007 forms the basis of relationship of the two nations.

  • Importance-
    • India’s most successful bilateral relationship
    • Chumbi valley
    • Buffer state
    • Contain insurgency in NE
    • Boycotted BRI

  • Cooperation:

    • India is Bhutan’s largest trading partner
    • Recently Modi inaugurated the mangadechhu project of 700MW ,
    • Kholongchu 600MW joint venture of India and Bhutan
    • India launched use of Rupay card in Bhutan to improve people to people contacts
    • Acc to UN convention, landlocked countries to be given only 2 ports of access, India has given unlimited access to all ports.
    • India’s continuous contribution in Bhutan's five year plans.
    • India is Bhutan's largest trading partner
    • India’s assistance to Bhutan during Doklam crisis shows India's seriousness for Bhutan's sovereignty.
    • India has proposed to build a road in Bhutan’s ‘Yeti territory’ — which China claimed recently — enabling New Delhi to quickly access Tawang in Arunachal Pradesh. The road, which has strategic significance, will reduce the distance between Guwahati and Tawang by 150 Kilometres
    • India and Bhutan are the only countries who have refused to endorse the Chinese BRI.
    • India provides training to Royal Bhutanese army


  • challenges:

    • India needs to broaden economic base of relationship from only focusing on Hydroelectricity projects

    • India pushing for motor vehicles agreement for BBIN but Bhutan reluctant due to environmental issues.
    • late implementation of projects leads to cost overruns and increases debt of Bhutan


  • Conclusion-Bhutan gives the best platform for India to set example to other neighbouring countries by showing how India respects small nations sovereignty , supports nations through fair trade, aid and connectivity.

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